Enel: CSR and Performance Measurement

The Enel case is focused on the impact of CSR on performance measurement and evaluation. Particularly, it points out the impact that a CSR approach can have on performance measurement both for external and internal users. On the one side, we refer to the external reporting for communication and information towards the stakeholders (CSR disclosure), such as the triple bottom line reporting, or the environmental and social balance sheet; on the other side, it is taken into consideration the managerial reporting devoted to support the management in the evaluation of business performance and in the decision making process. With regard to CSR disclosure, and considering an historical point of view, the case deals with the introduction of the social balance sheet and the environmental reporting in 1996, the ethical code in 2002, and the sustainability balance sheet in 2003. Referring to the managerial reporting, the case describes how, since 2003, the CSR principles have been introduced in the strategic planning, budgeting and managerial reporting. It gives also an account of the introduction of a Sustainability Balanced Scorecard. The case deals also with the reasons why a company decides to revise its performance measurement and evaluation systems, in order to align them to the CSR approach, the related advantages and difficulties, and the technical issues (the contents of the sustainability balance sheet and reporting, the choice of KPI, the IT issues, and so on).